EU Commission approves Italian state subsidies for renewables

ROME, June 8 (Reuters) - The European Commission said on Monday it had approved a €23 billion ($27 billion) Italian state aid scheme for renewable electricity production.

• The measure aims to help Italy reach its target of sourcing 39.4% of gross final electricity consumption from renewables by 2030.

• Aid will be provided through two-way contracts for difference (CfDs) lasting 20 years, under which the state pays producers when market prices fall below an agreed strike price, while producers repay the difference when prices rise above it.

• "The scheme will also help Italy reduce its dependence on fossil fuel imports and enhance its renewable energy share," EU antitrust chief Teresa Ribera said in a statement.

• The €23 billion budget is based on market price estimates, and actual net support could be significantly lower if electricity prices exceed projections.

• Under Prime Minister Giorgia Meloni's right-wing government, Italy has been lagging behind EU peers in the push to switch to renewables.

($1 = 0.8668 euros)

(Reporting by Alvise Armellini; Editing by David Holmes)